The Fannie/Freddie Foreclosure Attorney Cabal Eliminated…PROFOUND IMPLICATIONS….

Hot off the presses from the Florida Daily Business Review is a very interesting article that has some important facts buried underneath.   You’ve really got to read the article and consider the statements that are made in the article.   The comments strike to the very deepest heart of virtually foreclosure case in this state and will provide a rich source of very important questions that attorneys, policy makers and legislators and especially our entire court system must be asking.

The bottom line is this….mediation has failed and foreclosures and our courts remain in chaos and a key issue underlying all of this is the inability of anyone to get a straight answer out of the plaintiffs, lenders, servicers, owner, holder, person entitled to enforce.

I know the Dark Side got all in a hissy and objected to the characterization of their industry as a game of Chutes and Ladders, but it’s a fair and frankly easy to grasp explanation of what’s wrong with our entire, banking, finance, government and legal system.   But Chutes and Ladders was actually stolen from another game called, Snakes and Ladders a far more appropriate description of the state of affairs.

‘Race To The Bottom’

Foreclosure defense attorneys greeted the news favorably. They have complained bitterly about the quality of Fannie and Freddie attorneys and placed some of the blame for documentation problems on the agencies.

“It’s high time somebody does something,” said Matt Weidner of the St. Petersburg-based Foreclosure Law Offices of Matt Weidner. “The centralization of this poor legal work was a big part of the problem. The race to the bottom on ethics and legal accuracy and the profit model is a big part of the overall problem.”

Already, he said he has seen Fannie Mae and Freddie Mac pulling back from cases and more involvement by lenders and services.

“By decentralizing and putting the cases in the hands of lawyers that have decision-making power and communication with their clients, the banks, we are seeing actual decision-making. You can actually get someone on the phone.”

Banks with Fannie and Freddie files can now farm them out to smaller law firms “with better models,” Weidner said. Foreclosure law firms say it will take time to see the effects of a policy change by the Federal Housing Finance Agency that phased out lists of pre-approved law firms allowed to handle foreclosure cases for Fannie Mae and Freddie Mac.

DAILY BUSINESS REVIEW